Water rates not rising as sharply as first thought in Tewksbury

TEWKSBURY -- Residents are set to see another jump in water rates next year, but not as high as originally expected.

Sewer rates are still set to rise the recommended 8 percent, but Tewksbury officials are working with the town's legislative delegation in hopes of stemming future rate hikes.

The average household will pay about $9 more on its water bill next year, and $32 more on its sewer bill.

The increases are relatively small compared to the 30 to 75 percent increases of 2010, which led frustrated residents to vote for a shift of half of the town's sewer debt onto the town's property-tax bills instead.

"We're doing the best we can to try and keep a handle on what we owe, and make it as fair as we can," said Board of Selectmen Chairman David Gay.

In late February, Town Manager Richard Montuori presented selectmen with his recommended water and sewer budgets, calling for a 6 percent increase in water rates and an 8 percent increase in sewer rates.

Two weeks later, Montuori revised his proposal to include a 2 percent water-rate hike.

He said the drop came after he learned the town took in more revenue from water liens than projected.

The lien revenue comes from fees paid by residents who are late on their bills, Montuori said.

"We have a lot of them," he said. "We end up collecting them. It just takes about a year after they're paid."

The original presentation reported $200,000 in water-lien revenue, but there ended up being $650,000.

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A family using the town's average of 55,000 gallons of water a year will see its rate go up from the current $9.44 per thousand gallons to $9.63 per thousand gallons, for a bill totaling $433.43.

Sewer rates for a household with average usage will rise from $8.43 per thousand gallons to $9.10, for a total bill of $431.48.

Sewer-lien revenue also came in higher than anticipated, with the final number at $500,000, instead of the original $150,000.

That change won't have an impact on rates, but will instead be moved to a surplus revenue account.

"There just wasn't enough movement there to make a difference," Montuori said.

The rate jumps are the result of the sewer- and water-line expansion the town first took on in 2001. The project carried a $98 million pricetag, financed through 20-year bonds.

For Fiscal 2014, $3.7 million in debt service will make up 60 percent of the $6.4 million sewer enterprise budget.

"We have to pay for everything that we bought," Selectmen Vice Chairman Doug Sears said. "It's a matter of prudent fiscal responsibility of paying what is due."

While selectmen have said they support these comparatively small rate hikes, some on the board are hoping the state can step in for future relief.

A bill filed by Tewksbury state Reps. Jim Lyons, R-Andover, Jim Miceli, D-Wilmington, and state Sen. Barry Finegold, D-Andover, calls for the allocation of the state's Sewer Relief Fund to be quadrupled and at least $200,000 of that money to be earmarked specifically for Tewksbury.

Gay said he, Sears and Selectman Todd Johnson asked the lawmakers for help finding a way to both keep the rates down and stop future escalation.

Established in 1993, the Sewer Relief Fund pays out to communities that have applied for assistance in covering their debt service for wastewater-removal projects.

Sears said the Sewer Relief Fund was designed to support communities in expanding their sewer systems but has not been fully funded by the Legislature.

For the 2012 and 2013 fiscal years, $500,000 was allocated for the fund. Tewksbury's legislative delegation wants to see that number boosted to $2 million.

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